Technical analysis: key levels for gold and crude

Both gold and oil continue to be under pressure, but there is hope that a rebound is at hand.

Gold fights to hold support

Yesterday saw a dip to $1307 for gold, but the buyers came in to defend it.

While losses continue today, it may be that $1313 will hold, and then this may prompt a wider move higher. Momentum is oversold once again, so dip buyers may want to keep gold on their radar, given the broader uptrend over the past year.

WTI dips below 50-day moving average

The price lost the 50-day simple moving average (SMA) of $61.22 yesterday for the first time since August, with WTI dropping below $60.74 support as well.

Below this, the $59.00 level comes into play. A recovery above $60.74 would be a good first step, and then on to $62.56.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by writer

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.